To be successful, any business needs a committed owner, a strong concept, realistic goals, strategy, and funding. Using your own money is often a good option, but the problem with most new business owners is that they don’t have their own money. The only real option is to look for a small business loan. Financing is generally categorized into a couple of different options, such as debt and equity financing.
The traditional route to getting a business loan from a bank or financial institution isn’t for everyone, especially if you don’t have a business credit history and your personal credit history isn’t as good.
However, if you have had a business in operation for at least two years, you will have a better chance of getting approved by a bank for a long time. Even if you are a new business, there may be options to get a secured loan if you have some type of collateral. Don’t forget credit cards either. It can be beneficial for a small business to establish a line of credit with a financial institution as the business grows as a means to help manage cash flow, as long as payments are made on time.
Increase your chances of getting a small business loan
To really increase your chances of getting approved, show how you plan to use the funds. Any potential investor or lender will want to understand why you are seeking funds, how you plan to use the funds, and how you plan to pay them back. Break down the things you will need money for. Don’t ask for just $10,000. Request $5,000 for inventory, $4,500 for equipment, and $500 for advertising. Explain your strategy for how you will earn profits and returns on your investment so that you are in a good position to pay for them.
In addition to getting a small business loan, it might also be worth considering alternative lenders such as online lenders, angel investors, crowdfunding, etc.
ALWAYS be upfront and honest. When completing any type of application form, please be completely honest and try to be as accurate as possible. All details related to your business should be consistent across the board: the loan application itself, official documents and records, social media accounts, etc. Just one type could actually hurt your chances.
The best place online to try to get a small business loan is US Business Funding. All you have to do is use the free loan calculator to receive a FREE instant quote, and then you can apply for funds through a secure website in a matter of minutes. An agent will then contact you to help you understand what to do next.
